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Adesina Olumide
gold, gold bars

Gold traders took off some of their long positions after uploading stacks of stop losses between $ 2045-57. Gold futures price pulled back from its all-time high at $2,057.5 as real yields eventually went upward in a parallel fashion to actual yields; however, the yellow metal’s pullback was temporary.

Gold traders are having a long day, keeping their long bets, as the world’s largest economy is expected soon, in unveiling $1 trillion stimulus packages to help stimulate growth in its fragile economy, amid the resurgence of the COVID-19 pandemic.

The precious metal trade presently looks pretty immune to just about everything, including the potential development of a COVID-19 vaccine, and bullish gains recorded in risky assets like global stocks, even though global investors have no opportunity cost owning the precious metal, except for higher real yields.

Gold bulls are charging at a steady pace, triggered by two vital economic macros that include over-bloated global debt and excessive U.S dollar liquidity finding its way in the world’s financial system.

The global economic damage by the ravaging and deadly COVID-19 virus seems not to be all over, and even with a COVID-19 vaccine, the global economic loss, particularly in the last two quarters of 2020 can’t be replaced.

So it seems reasonable for Gold traders to maintain their bullish bets even as Gold’s bullish rally seems to be suffering from exhaustion above the $2,000 price level.

In addition, Gold bulls are having their best upward run in the precious metal market as favorable fundamentals such as global interest rates remain low with leading global central banks pumping more money to an already bloated financial system via more stimulus packages.

Global bulls are definitely enjoying gold’s record rally, but they might meet some roadblocks ahead, like an impressive U.S job report scheduled for tomorrow.

For a look at all of today’s economic events, check out our economic calendar.
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